Warren LichtensteinSteel Partners’ plan to transform its flagship hedge fund into a publicly-listed holding company has been rejected by a majority of the fund’s shareholders.

Investors representing just 38% of Steel Partners II’s assets are in favor of the New York hedge fund’s controversial plan, which has already drawn a pair of lawsuits, the New York Post reports. Another 18% picked a second option offered by Steel chief Warren Lichtenstein that would allow them to redeem their investments through a combination of cash and in-kind securities.

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